Credit & Interest 3.9D

Front

What is credit?

Back

Credit is the ability to borrow money or access goods and services with the understanding that you'll pay later.

Front

What is interest?

Back

Interest is the extra money you pay back when you borrow money, usually expressed as a percentage of the loan.

Front

If Amy buys a television for $495 and pays $92 in interest, what is the total amount she pays?

Back

$587

Front

What does it mean to pay back a loan?

Back

Paying back a loan means returning the borrowed money, often with interest, to the lender.

Front

What is a loan?

Back

A loan is money that is borrowed and must be paid back, usually with interest.

Front

If Juan borrowed $2,000 and paid back $2,500, how much interest did he pay?

Back

$500

Front

What is the purpose of keeping track of finances?

Back

Keeping track of finances helps you understand how much money you have, how much you owe, and how to manage your spending.

Front

What is a loan with no interest?

Back

A loan with no interest is a loan that you pay back without any extra charges added.

Front

Why do banks charge interest on loans?

Back

Banks charge interest to make a profit and to compensate for the risk of lending money.

Front

If Liam paid $405 for a blender and $78 was interest, what was the original price of the blender?

Back

$327